Registering and Licensing a Home-Based Business in Jordan
About this campaign: The Home-Based Business Regulations Awareness campaign is a nationwide campaign to raise public awareness on what constitutes a home-based business, and what types of businesses people can operate from their home in Jordan.
One of the aims of the campaign is to encourage people operating their business informally from home to register legally as a formal home-based enterprise.
As part of this awareness campaign, a guide on how to register and license a business from home was developed by the Ministry of Industry, Trade and Supply, Ministry of Municipal Affairs and the Greater Amman Municipality, with support from the USAID Jordan Local Enterprise Support Project (LENS). This manual explains the benefits of formalizing your home-based business, the types of professions allowed to be licensed from home, registration and licensing procedures, contributing to their growth alongside to technical and regulatory conditions for a formalized home-based business.
This comprehensive guide is only currently available in Arabic, but there are English-language resources available with a summary of the registration and licensing procedures required to formalize a home-based business, as below:
Government policy on home-based businesses : The Economic Policies Council in Jordan issued recommendations that emphasized on the importance of facilitating and developing a framework for home based businesses, to facilitate startups with the lowest costs and simplest procedures possible.
A coordinating mechanism headed by the Ministry of Industry, Trade and Supply (MOITS) was established to push this file through. A working group came together for the purposes consisting of the Ministry of Municipal Affairs, Greater Amman Municipality and Ministry of Industry and Trade and Supply to stimulate economic growth and provide all forms of support to citizens.
Supporting data on micro and small enterprises in Jordan: In 2014, the USAID Jordan Local Enterprise Support Project (LENS) carried out a Micro and Small Enterprises (SME) Survey covering a sample of 4,700 businesses; and identified the sectors in which these businesses operate within which, home-based businesses were accounted for. This survey showed that about one-quarter (23%) of economic activities in Jordan is informal. The MSE Survey revealed that the HBBs sector have witnessed significant increase over the past five years, especially among women seeking additional income. The Survey also revealed that around 21% of the informal sector in Jordan is home-based; which represent approximately 5% of all MSEs in Jordan, which negatively affects informal workers in terms of legal protection and the possibility of expansion and growth on the one hand, and the accuracy of economic indicators and economic growth rates in the Kingdom on the other hand.
Formalization of home–based businesses:The Ministry of Industry, Trade and Supply, Ministry of Municipal Affairs and the Greater Amman Municipality developed and amended the legislative and institutional system that regulates home-based businesses to include more professions and to cover all governorates of the Kingdom.
The Ministry of Municipal Affairs amended the Regulations on Buildings and Zoning for Cities and Villages No. (69), which were issued in January 2017. The regulations stated that the Higher Organizing Council may use residential areas for starting HBBs. This regulation constitutes a legal basis for home-based businesses. Prior to this, only businesses located within the boundaries of Greater Amman Municipality could legally. register from home. Stemming from these amended HBB regulations, legal instructions were then issued on home-based businesses and published in the Official Gazette in August 2017.
Greater Amman Municipality also issued instructions for licensing businesses from home within the boundaries of the Amman Municipality for the year 2017. For more information, please refer to Articles 5& 6 of the Occupational Licenses Law for Greater Amman Municipality and its amendments No. 20 of 1985 and Article 28 of the Building and Organization Law for Greater Amman Municipality No. 67 of 1979.
The legal framework is now in place so businesses can be legally licensed to operate from home in all municipalities in Jordan. This was done to simplify business procedures and start-up costs for Jordanians who want to start their own business.
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